The fund which oversees Hong Kong's foreign exchange reserves reported Thursday net investment income of $106.7 billion Hong Kong dollars ($13.73 billion) for 2009, its second-highest annual return on record, lifted mainly by the 52% rally in benchmark Hang Seng Index during the year.
The fund saw a total gain on its investment in Hong Kong stocks of HK$48.9 billion, and overall investment return of 5.9%, the Hong Kong Monetary Authority said in a statement on its Web site Thursday.
The HKMA's Chief Executive Norman Chan cautioned returns this year won't likely be as generous.
"The uncertainties surrounding the movements of interest rates, international fund flows and exchange rates may lead to considerable volatility in global asset markets in 2010," Chan said in the statement. "The performance of the financial markets is clouded by the considerable uncertainty about the timing of the exit from monetary easing"
The gains follow a dismal 2008 wherein the fund reported a net loss of HK$81.2 billion, mainly owing to a loss of HK$77.9 billion. The Hang Seng Index fell 48% that year.
The fund is operated by the city's central monetary authority to help ensure financial stability and maintain the Hong Kong dollar peg to the U.S. dollar.